Debt-to-equity compares a company's total financial debt to its shareholders' equity — how much the business relies on borrowed money versus owner capital.
A debt-to-equity ratio that would be alarming for a technology company can be entirely normal for a utility or REIT — both run capital-intensive businesses funded partly by debt as a matter of course. Capital-light, high-margin businesses typically run much lower leverage. Always compare against sector peers, never a single universal threshold.
Live example: AAPL's current debt-to-equity ratio is 152% — heavy financial leverage — sector-dependent, but worth checking against peers. See the full AAPL forecast for its Fundamentals card.
Debt has to be serviced regardless of how the business is performing. A heavily-levered company is more exposed to rising interest rates and to an economic downturn — the same leverage that amplifies returns in good times amplifies losses in bad ones.
There's no single healthy number — it's sector-dependent. Under 50% is typically light leverage, 50-150% moderate, and above 150% heavy, but capital-intensive sectors routinely run higher.
Both sectors require heavy upfront capital investment conventionally financed partly with debt, with revenue stable enough to service it reliably. Capital-light businesses run much lower leverage.
Not automatically — debt can fund growth productively when the return it finances exceeds its cost. It becomes real risk when combined with unstable cash flow or rising rates.
AAPL analysis shows this metric in context, or browse all S&P 500 tickers.
Educational research only — not investment advice.